Russian UES Chief Chubais Arrives in Tbilisi

(Tbilisi, August 6, 2003, Civil Georgia) – Chief of the Russian state-owned Unified Energy Systems (UES) Anatoly Chubais arrives today in Tbilisi to hold talks with the Georgian leadership over the company’s entry in the country, which took over the Georgia’s energy sector, replacing US company AES.

Anatoly Chubais will meet with the Georgian President, State Minister, Minister of Energy and with other officials.

On July 31 AES Corporation announced that it sells its assents in Geo!
rgia to the Russian energy giant UES.

As a result of the deal the Russian power giant, which already owns 50% of the power lines in Georgia, acquires 75% of AES Telasi electricity distribution company in capital city, power plants Khrami-1, Khrami-2 and two power blocks of AES Mtkvari. Thus the Russian state-owned UES becomes the monopolist in the Georgian energy system.

The deal caused protest of the political circles in Georgia. Opposition demands from the authorities to obstruct the entry of the UES. As the opposition claims the Russian state-owned company will use the monopoly over the Georgian energy system to mount political pressure on the country.

However the Georgian government and the President hailed the entry of the Russian company claiming that the UES entry is economically motivated and rules out possibility of the use of the company by Moscow as a political leverage.

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